Embraer (EMBR3) Q2 2026 earnings summary

Executive summary

• Achieved record Q2/2Q26 revenue of $2.24 billion (R$11.3 billion), up 23% year-over-year, with 65 aircraft delivered—the highest Q2 deliveries in 16 years—and a historic order backlog of $34.5 billion, up 16% year-over-year.

• Strong performance and growth across all business units, driven by sales execution, operational discipline, and production ramp-up.

• Adjusted EBIT reached $297 million (13.3% margin), boosted by a $68 million extraordinary tax credit and lower U.S. tariffs.

• Raised 2026 guidance for EBIT margin (10.0–10.6%) and free cash flow ($400 million+), reflecting confidence in the business outlook and favorable effects.

• Backlog reached a seventh consecutive all-time high, with options potentially expanding it to $55 billion.

Financial highlights

• Net revenues rose 23% year-over-year to $2.24 billion (R$11.3 billion) in Q2/2Q26; first-half revenues reached $3.7 billion (R$18.9 billion).

• Adjusted EBITDA was $356 million (15.9% margin) and adjusted EBIT was $297 million (13.3% margin); adjusted net income was $290 million (R$1.1 billion), with EPS at $2.50 (R$1.52).

• Adjusted free cash flow (excluding Eve) was $401 million (R$2.0 billion) in Q2/2Q26.

• Extraordinary tax credit of $68 million and U.S. import tariff relief impacted results.

• Consolidated cash position at quarter-end was $2.34 billion (R$12.1 billion), with $1 billion undrawn RCF.

Outlook and guidance

• 2026 guidance: commercial deliveries 80–85, executive deliveries 160–170, revenue $8.2–$8.5 billion.

• Adjusted EBIT margin guidance raised to 10.0–10.6% (from 8.7–9.3%), and free cash flow (ex-Eve) to $400 million or more.

• Production capacity expected to reach 120–130 commercial jets, 200 executive jets, and 10 KCs per year by 2030.

• Upward revision reflects extraordinary tax credit, U.S. tariff relief, and improved business outlook.